FX.co ★ German Consumer Morale Unexpectedly Falls

Germany's GfK Consumer Climate Indicator decreased to -21.5 as we approached August 2025, down from -20.3 the previous month. This figure fell short of market expectations, set at -19.2, and represents the lowest level since April. The downturn indicates increasing consumer pessimism, with the saving propensity reaching its highest point since February 2024 (16.4 compared to 13.9 in July) and a continued decrease in purchasing willingness for the second month (-9.2 vs -6.2). Economic expectations plummeted significantly (10.1 down from 20.1), halting a five-month period of gains. According to NIM consumer expert Rolf Buerkl, "The recovery in consumer sentiment remains stalled, as the inclination to save has increased again." He attributed this to broad uncertainty, a need to prepare for challenging times, and elevated food prices. Nonetheless, income expectations rose for the fifth consecutive month, reaching a twelve-month peak (15.2 compared to 12.8), bolstered by robust wage agreements and moderating inflation.